Question: The diagonal of a particular square is 5 inches.  The diameter of a particular circle is also 5 inches.  By how many square inches is the area of the circle greater than the area of square?  Express your answer as a decimal to the nearest tenth. [asy]
draw((0,0)--(2,0)--(2,2)--(0,2)--cycle);
draw((2,0)--(0,2));

draw(circle((4.5,1),1.414));
draw((2+3.5,0)--(0+3.5,2));
[/asy]
Solution: Let the side length of the square be $s$, so the area of the square is $s^2$.

[asy]
size(75);
draw((0,0)--(2,0)--(2,2)--(0,2)--cycle);
draw((2,0)--(0,2));
label("$s$",(1,0),S); label("$s$",(0,1),W); label("$5$",(1,1),NE);
[/asy] By the Pythagorean Theorem, we have $s^2+s^2=5^2$, so $2s^2=25$ and $s^2=\frac{25}{2}$, so the area of the square is $\frac{25}{2}=12.5$.

[asy]
size(85);
draw(circle((1,1),1.414));
draw((2,0)--(0,2));
label("$5$",(1,1),NE);
[/asy] Since the diameter of the circle is $5$, its radius is $\frac{5}{2}$, and its area is $\pi \displaystyle\left(\frac{5}{2}\displaystyle\right)^2 = \frac{25}{4}\pi$, which is approximately $19.63$.

The difference between the two areas is approximately $19.63 - 12.5 = 7.13$, which, to the nearest tenth, is $7.1$.  Thus the area of the circle is greater than the area of the square by $\boxed{7.1}$ square inches.